By Topic

The Effects of Switching Costs on User Resistance to Enterprise Systems Implementation

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$33 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

1 Author(s)
Hee-Woong Kim ; Sch. of Grad. Sch. of Inf., Yonsei Univ., Seoul, South Korea

It is estimated that up to 70% of the large-scale information systems [i.e., enterprise systems (ESs)] implementation projects conducted to date have failed. User resistance to ESs implementation is consistently identified as a critical reason for this high failure rate. While previous research, primarily through case studies, has explored several reasons for user resistance, the results of status quo bias research suggest that switching costs are the main reason. This study classifies switching cost subtypes based on status quo bias research, develops a theoretical model based on the equity implementation model, and examines the effects of switching costs on user resistance through a survey of employees at a manufacturing company that was in the process of implementing a new ES. The results of this survey indicate that uncertainty costs and sunk costs directly increase user resistance, while transition costs and loss costs indirectly increase user resistance by reducing the perceived value of switching. The results of this study advance the theoretical understanding of ESs implementation and user resistance to change. These findings also offer suggestions to organizations for managing user resistance and may help reduce the failure rates of ESs implementation projects due to user resistance.

Published in:

Engineering Management, IEEE Transactions on  (Volume:58 ,  Issue: 3 )